Though bitcoin prices have plunged to the lowest level in two years, Ark Invest, the investment firm helmed by high-profile stock picker Cathie Wood, has doubled down on the struggling sector in the days since befallen crypto exchange FTX filed for bankruptcy—defying many analysts by buying more than $60 million in crypto-related stocks as the firm insists its conviction in the space is as high as ever.
The transactions come as the price of bitcoin fell to a two-year low of less than $15,600 on Monday—pushing losses to more than 20% during the FTX turmoil, according to CoinMarketCap. Despite Ark’s growing bullishness, several analysts haven’t been so optimistic about the crypto space: In a Friday note, Mizuho analyst Dan Dolev noted Coinbase’s daily trading volumes have fallen about 35% below their yearly averages—“suggesting worn-out consumers who appear uninterested” in the “deteriorating” crypto industry.
The FTX collapse “diminished confidence in the crypto ecosystem” and has created new headwinds “that warrant additional caution” when investing in stocks like Coinbase, Bank of America’s Jason Kupferberg wrote in a note on Friday, adding he worries “contagion risk” could linger as some users sell their assets to “leave crypto entirely.”Despite skyrocketing nearly 150% in 2020, Ark’s Innovation ETF fell 24% last year and has cratered 59% in 2022. To compare, the S&P 500 is down 30% this year.
Bubble queen
Smart lady
Stick with btc true crypto golden energy